SOURCE: Cutting Edge Information

Cutting Edge Information

June 16, 2015 09:30 ET

Regulatory Mandates for the Disclosure of Physician Compensation to Extend to New Countries

Drug and Device Companies Face More Comprehensive Regulatory Guidelines for Paying Key Opinion Leaders (KOLs) at Fair Market Value (FMV) Rates, According to Report From Cutting Edge Information

RESEARCH TRIANGLE PARK, NC--(Marketwired - June 16, 2015) - Pharmaceutical and medical device companies have had more than a year to adjust to the Sunshine Act's impact on key opinion leader (KOL) management. But the US is not the only country with a formal disclosure requirement: drug and device companies are about to face increased regulatory pressure from countries around the world, according to a new study by fair market value (FMV) experts Cutting Edge Information.

France and Slovakia have each approved their own versions of transparency legislation. And although Canada does not yet have disclosure laws in place, many executives interviewed for Cutting Edge Information's FMV report believe that it is only a matter of time.

In fact, regulations abroad are often more comprehensive. While US reporting obligations extend only to payments rendered to physicians and teaching hospitals, France's Loi Bertrand extends beyond physicians to cover all healthcare audiences, including students, professional associations and patient advocacy groups. This legislation also requires non-life science companies such as health software companies to publicly disclose their relationships with healthcare audiences.

With other countries pushing for their own disclosure requirements, many life science companies have begun standardizing their approach to KOL payment data collection. Cutting Edge Information's study details three critical steps companies need to take to establish a system for paying fair market value when compensating KOLs:

  • Standardize rate cards
  • Create clear KOL scoring systems
  • Provide regular access to reliable FMV rates

Global Key Opinion Leader Compensation 2015, available at http://www.cuttingedgeinfo.com/research/medical-affairs/thought-leader-fmv-physician-fee-schedules/, is designed to help drug and device companies stay compliant and keep pace with the rapid, worldwide formalization of FMV processes and legislation, as well as to determine whether company FMV payments for specialists and non-MDs are defensible and clear. Other key questions answered by this report include:

  • What are the most relevant factors to consider when determining FMV compensation?
  • How do subspecialists fit into the FMV determination process?
  • What factors should companies take into account when formalizing their payments?
  • How is the US Sunshine Act influencing transparency requirements in other markets?

To learn about Cutting Edge Information's fair market value service, please visit http://www.cuttingedgeinfo.com/physician-fair-market-value/.

Cutting Edge Information's FMVConnect Database
FMVConnect, a benchmarking and analysis solution by Cutting Edge Information, provides healthcare companies with the data necessary to build key opinion leader relationships and to establish top-notch physician and non-physician fair market value fee schedules.

Our team of research experts has worked with thought leaders and pharmaceutical executives to develop a time-tested methodology for identifying and segmenting healthcare professionals and for determining fair market value for specific thought leader activities.

With Cutting Edge Information's FMV services, you can:

  • Implement a fee schedule based on detailed KOL compensation benchmarks
  • Establish sound consultant and advisor payment practices
  • Receive a customized data set based on your company's specific needs

FMV data for different though leader activities are presented in tables and grouped by specialty, geographic region and tier. Our comprehensive database includes information from 117 countries, 109 specialties and subspecialties and 63 non-specialties.

Go to http://www.cuttingedgeinfo.com/physician-fair-market-value/ for more information.

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